Monday, June 10, 2013

NA vehicle output could hit 11-year high in 2013

NA vehicle output could hit 11-year high in 2013


North American auto production could hit an 11-year high in 2013 as strong demand continues to fuel ever-rising sales.

LMC Automotive and IHS Automotive, citing an improving United States economy, forecast that auto production in North America will jump from 15.5 million units in 2012 to about 16 million units this year. If that prediction proves true, it would mark the region's highest level of output since 2002.

"We're getting close to the point where all factories are hitting full speed," Jeff Schuster, LMC's executive director of automotive forecasting, told Automotive News. "We could hit a wall if this keeps up."

Schuster noted that most North American factories are currently running at about 90 percent of full capacity.

LMC predicts North American output will hit 16 million units in 2013 while IHS is calling for a slightly higher 16.1 million units. Either figure would be North America's highest vehicle output since the region made 16.5 million vehicle in 2002.

Strong demand for pickup trucks from General Motors, Ford and Chrysler are expected to play a major role in North America's production uptick. However, increased demand for passenger cars from Toyota, Nissan and Honda will also boost the region's final production tally.

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